Free: What does that really mean?

Learon DalbySenior VP Business Solutions

2/25/2013

NSGIC 2013 MIDYEAR MEETINGFebruary 24 - 28, 2013Loews Annapolis Hotel

126 West Street, Annapolis, MD 21401

iTunes: Free

YouTube: Anderson overview

Amazon: $6.40

https://summaries.com/index/Free.pdf

CHRIS ANDERSON is the editor-in-chief of Wired magazine

Free: The Future of a Radical Price

“The new form of Free is based on the economics of bits, not atoms.”

Free: The Future of a Radical Price

“The simple and undeniable fact is free is an attractive price point. It will be the basis for many a

business model in the future because the abundance of digital markets is a given, not an

option.”

History Free: The Future of a Radical Price

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

http://files.myopera.com/jdlien/blog/cross_subsidy.png

History Free: The Future of a Radical Price

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

http://files.myopera.com/jdlien/blog/cross_subsidy.png

History Free: The Future of a Radical Price

http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

History Free: The Future of a Radical Price

http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

History Free: The Future of a Radical Price

http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

History Free: The Future of a Radical Price

http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

History Free: The Future of a Radical Price

http://files.myopera.com/jdlien/blog/non-monetary.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

History Free: The Future of a Radical Price

http://files.myopera.com/jdlien/blog/non-monetary.png

• Four basic business models of Free– Direct cross-subsidies– Three-party markets – Freemium– Non-monetary markets

Freeconomics Free: The Future of a Radical Price

Scarcity Abundance

You have to get permission Rules Anything goes

“We know what’s best” Social Model “You know what’s best”

Business model Profit Figure it out as we go

Top-down Decision Process Bottom-up

Command and control Management Out of control

Free: The Future of a Radical Price• If you make a digital product, realize sooner or

later it’s going to be free

• You can’t stop free

• Understand that sooner or later you’re going to be forced to compete with free in your industry

• Don’t forget free inevitably ends up making some things more valuable

https://summaries.com/index/Free.pdf

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http://coolspringsexpress.com/foodpix/Beverages-lg.jpg

Considerations

• Data• Hardware• Software

Total Cost of Ownership

Contact Information

Learon DalbySenior VP Business Solutions

@learondalbyldalby@sanborn.com